Bitcoin has been trading higher, but the current rebound is on a fragile footing. Bitcoin continues to test a key resistance while on-chain data casts doubt on the momentum. Several indicators are signaling a bearish tilt that could dampen any meaningful upside without a sustained rally. Chaikin Money Flow is forming a bearish divergence with price, indicating selling pressure is mounting beneath the surface even as BTC makes new highs.
The divergence suggests that capital outflows have not yet fully reflected in price. If the downward pressure remains unresolved, the market may see only a muted rally or a fresh leg lower. Bitcoin is trading around $70,724, just below the $71,529 resistance that has capped moves over the past six weeks. Each breakout failure has reinforced the structural importance of that level, and a clear breakout has not materialized.
On-chain bearish indicators imply another rejection at $71,529 is likely, and a failure there could drive the price toward $65,776. This pattern mirrors prior bear-market-like price action, with selling pressure potentially accelerating the move. A transition from selling pressure to accumulation could open a positive scenario; if buyers step in, Bitcoin could break above $71,529 and close above $74,000, signaling a shift away from the bearish outlook toward a move toward $75,000.
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